WASHINGTON, D.C. — The Department of Veterans Affairs paid more than $36 billion to non-VA healthcare providers in fiscal 2025 under its Veterans Community Care Program, underscoring the growing role of private-sector providers in delivering care to millions of U.S. veterans.
The payments were made under the VA MISSION Act, the bipartisan law signed in 2018 that allows eligible veterans to receive care from authorized community providers at government expense.
The Veterans Community Care Program has become the nation’s fourth-largest healthcare payer program and supports healthcare services for more than 8.62 million enrolled veterans, according to the department.
Congress reinforced the program last year through the Senator Elizabeth Dole 21st Century Veterans Healthcare and Benefits Improvement Act, which requires the VA to allow veterans and their clinicians to choose community care without additional review when it is deemed medically appropriate.
Veterans also may qualify for community care if travel times or wait times for VA services exceed certain thresholds or if a needed service is unavailable within the VA system.
The spending has become an increasingly important source of revenue for healthcare providers, particularly in rural areas where many hospitals and clinics operate on thin margins.
Texas received the largest amount of community care funding in fiscal 2025 at $3.3 billion, followed by Florida at $2.8 billion and California at $2.1 billion. Pennsylvania ranked seventh, receiving approximately $1.1 billion in payments.
Despite the expansion of community care, the VA reported record spending on its own healthcare operations. The department spent $101 billion on direct care in fiscal 2025 and completed a record 82.1 million direct care appointments, a 4.1% increase from the previous year.
VA Secretary Doug Collins described community care as “a vital benefit” that supports both veterans and local economies.
The department also highlighted broader operational initiatives undertaken since January 2025, including the opening of 36 new healthcare clinics and a nearly $5 billion investment planned for fiscal 2026 to modernize and repair VA facilities.
As of June, more than 180,000 new veterans had enrolled in VA healthcare during 2026, according to the department.
The VA also reported that it has offered veterans more than 2.8 million appointments outside normal operating hours since January 2025 and permanently housed 51,936 homeless veterans during fiscal 2025, the highest annual total in seven years.
A March 2026 Rasmussen Reports survey cited by the department found that 90% of likely military voters support allowing eligible veterans to receive healthcare from community providers at VA expense.
The figures highlight the increasing financial significance of the community care program as the VA balances expanding private-sector access with continued investment in its own healthcare network.
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